Microsoft Corp. is facing its longest losing streak since 2011, with an eight-day decline of 8.6% that erased approximately $350 billion in market value. This downturn coincides with fallout from a $9.7 billion AI partnership with IREN Ltd., where Microsoft is acquiring artificial intelligence computing capacity, including access to Nvidia Corp. systems in Texas. The deal includes a 20% prepayment and marks a strategic shift for IREN from Bitcoin mining to AI cloud infrastructure.
Daniel Roberts, CEO of IREN, commented on the partnership, stating, "It's been a big weekend and it's fantastic to knock it off. But the reality here is, it's back into the office, we've still got a big job to do." The move has heightened concerns over tech sector valuations, contributing to a broader sell-off that impacted the Bloomberg Magnificent 7 Total Return Index and Nasdaq 100 Index, both down 4% in a week.
The volatility extended to cryptocurrency markets, triggering sell-offs and liquidity challenges. Specifically, Bitcoin (BTC) and Ethereum (ETH) values dropped, underscoring the correlation risk between tech stocks and crypto assets. Analysts warn that continued tech weakness could lead to further declines, emphasizing the need for cautious observation of market reactions.
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